What is the Fees of a Certified Financial Planner?
Ans: The fees for a Certified Financial Planner (CFP) vary widely.
Fee Structures
CFPs charge in different ways:
Hourly Rate: Rs 2000 to Rs 10,000 per hour.
Flat Fee: Rs 15,000 to Rs 75,000 for a comprehensive plan.
Percentage of Assets: 0.5% to 2% annually.
Retainer Fee: Rs 10,000 to Rs 50,000 per year.
Commission-Based CFPs
In India, many CFPs work on a commission basis.
Product Commissions: They earn from selling financial products like mutual funds and insurance.
No Direct Fees: You don’t pay them directly; they earn from your investments.
Professional Guidance: Choose a professional CFP who works on commission. It can be beneficial as they are motivated to help you grow your investments.
Services Provided
Comprehensive Planning: Includes retirement, tax, and estate planning, costing more.
Specific Advice: Focused on a single issue, typically costing less.
Experience and Reputation
Highly Experienced CFPs: Charge higher fees due to reputation.
Less Experienced CFPs: Charge lower fees to attract clients.
Location
Urban Areas: Higher fees due to living costs.
Smaller Cities/Towns: Lower fees.
Value of Professional Guidance
Personalized Advice: Tailored to help you achieve financial goals.
Long-term Benefits: Leads to better financial decisions.
Final Insights
Fee Structures Vary: Know the different ways CFPs charge.
Consider Services and Experience: Evaluate what you need and the CFP’s experience.
Weigh Costs vs. Benefits: Consider the long-term benefits of professional advice.
Commission-Based CFPs: They can be a good choice, offering motivated, growth-focused guidance.
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
